FASB Issues New Guidelines for Cryptocurrency Accounting

According to PANews, the Financial Accounting Standards Board (FASB) has released Accounting Standards Update (ASU) 2023-08, which outlines new accounting and disclosure requirements for cryptocurrencies like Bitcoin. The update mandates that cryptocurrencies meeting six specific criteria be regularly measured at fair value, with changes in value directly impacting net income. Additionally, these assets must be separately listed in financial statements. Companies are required to disclose detailed information, including the names of significant cryptocurrencies, their fair values, unit quantities, and any restrictive conditions. This standard is set to apply to fiscal years beginning after December 15, 2024, although early adoption is permitted.